Mortgage rates fell further this week, nearing their lowest levels since 2013 as fresh fears over the coronavirus outbreak sent investors sprinting to safer assets.
Markets' confidence in the containment of the virus was dented in recent days after a sudden surge in the number of cases outside of China prompted new fears of the global economy's vulnerability to the outbreak. Treasury yields fell sharply as a result, with the yield on the ten-year note plummeting to all-time lows. Mortgage rates, which generally follow the ten-year note, fell too, but not by as much as these conditions would normally indicate. Generally, lenders tend not to keep up with volatile movement in Treasuries like those seen in the past few days, particularly with rates as low as they currently are, opting instead to quote conservative rates and wait until the storm passes.
So while mortgage rates are likely to remain low as the breadth of the coronavirus outbreak continues to be digested, any downward movement will be muted compared to that of the ten-year yield. And, of course, if the tone of news regarding the outbreak should suddenly shift in a positive direction, a strong bump in mortgage rates would almost certainly follow.
The post Mortgage Rates Continue to Fall Amid Mounting Coronavirus Fears appeared first on Zillow Research.
via Mortgage Rates Continue to Fall Amid Mounting Coronavirus Fears
No comments:
Post a Comment